4 Impressive Dividend Stocks With Over 3% Dividend Yield
Zacks Investment Research | Aug 29, 2016 11:17PM ET
In recent times, stock markets across the world have been grappling with macroeconomic issues like lackluster growth in China, oil price slump, strengthening of the U.S. dollar and depressed energy markets. Investors also remain jittery following a disappointing Q2 earnings season as earnings growth for the S&P 500 index was negative.
Moreover, investors continue to be skeptical about the current state of market affairs that are being dictated by the movement in crude prices. With uncertainty ruling the markets since the beginning of the year, it is not surprising that dividend investing has emerged as one of the most popular investing themes.
Why Choose Dividend Paying Stocks
Dividend stocks are always the investors’ preferred choice as they provide steady income and cushion against market risks. These stocks are generally less volatile in nature and hence, are dependable when it comes to long-term investment planning.
In a low interest rate environment, dividend paying stocks offer substantial yields on a regular basis. Moreover, dividend-paying stocks are historically proven to outperform in the long term and are relatively safe in terms of wealth creation.
How to Pick the Best Stocks?
Although the benefits of dividend investing cannot be stressed enough, one should keep in mind that not every company can keep up with its dividend paying momentum. Hence, a cautious strategy needs to be followed in order to select the best dividend stocks with potential for steady returns.
Choosing the right dividend stocks can be a daunting task as it requires careful consideration of both the past performance of the company and its future prospects. If a stock has delivered strong performance in the past, but faces troubled times ahead, it definitely does not qualify as an attractive pick.
We note that an impressive current-year dividend yield and a strong dividend yield history are also important for identifying strong dividend-paying stocks.
We have used the Zacks Investment Research
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